General Motors and Ford, the US car manufacturers, have suspended operations on their production lines in Russia.
The move comes as the deepening global economic crisis squeezes Russian consumers' demand for new cars.
GM said its brand new plant outside St Petersburg would halt manufacturing until August 31.
"Having carefully studied the state of the Russian car market and the extent of reduction in the demand from the creditworthy population, we have decided not to force a production increase at our Russian plant this year," Chris Gubbey, GM Russia's president, said in a statement.
The company said no major layoffs would occur among the plant's 1,000 employees, though it was unclear whether that might signal smaller-scale cutbacks or unpaid temporary leaves of absence.
Dmitry Medvedev, Russia's president, visit the assembly plant in Shushary near St Petersburg in November.
The $300m venture was initially set to produce 60,000 cars a year.
GM and Ford suspend Russian plants
General Motors and Ford, the US car manufacturers, have suspended operations on their production lines in Russia.
The move comes as the deepening global economic crisis squeezes Russian consumers' demand for new cars.
GM said its brand new plant outside St Petersburg would halt manufacturing until August 31.
"Having carefully studied the state of the Russian car market and the extent of reduction in the demand from the creditworthy population, we have decided not to force a production increase at our Russian plant this year," Chris Gubbey, GM Russia's president, said in a statement.
The company said no major layoffs would occur among the plant's 1,000 employees, though it was unclear whether that might signal smaller-scale cutbacks or unpaid temporary leaves of absence.
Dmitry Medvedev, Russia's president, visit the assembly plant in Shushary near St Petersburg in November.
The $300m venture was initially set to produce 60,000 cars a year.
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